Purchase contract

 TDS PROVISION WILL BE APPLICABLE AS YOU ARE NOT CAPITALISING THAT EXPENSE.YOU WILL TREAT IT AS YOUR INDIRECT/DIRECT EXPENDITURE IN P&L A/C.THUS U/s 194C TDS WILL BE DEDUCTED @ 2%+SURCHARGE (IF APPLICABLE)+ CESS

Provisions of Section 194C are not applicable for supply of materials.

Hi Raghu,

TDS will not be aplicable.

Thanks Tinku fr ur reply

ok I agree with you but

It is contract for supply of material, so that I hv doubt it may be TDS applicable..seeking fr anothers openion

tds is required to be deducted in case of contract of providing any specified services and not for supply of any material, goods or capital assets like building, land therefore tds is not required to be deducted

If company have only purchasing a material and does not levy service tax in the bill thn it's simply transaction of purchase and sale, thus no need to deduction of TDS on that ok.

But in other case, bill contains service tax and amount is exceed to Rs.20000/- thn you should to deduct TDS @ 2.060%.

;-)

thanks for expresing your opinions...........I got some awareness in this descussion